HaiKhuu Daily Report - 12/12/2024
Good morning, and happy Thursday! I hope you traders are doing well and are ready for another amazing day for the markets! Markets are looking strong, and traders should be optimistic about conditions today! We do have PPI data coming out during the pre-market session, and cryptocurrencies are spicing back up, so please continue to tread lightly, but do what you can to attempt to actively trade and realize a significant amount of gains during this time.
I would not be surprised if the markets made a significant move in either direction today; pre-market sentiment will be key to directional movement and confidence. So, assuming PPI remains in line or possibly even drops, we will set up for a great time today. So watch out for economic data and continue to tread lightly while practicing safe risk management. At the same time, know that these market conditions are strong, so you should make the most of them while you can!
Good luck trading today, and let’s see where $SPY takes us!
(Also, a final reminder that TOMORROW, on Friday, I will be gone during the back half of the trading day as a result of our holiday donation)
The updated $SPY daily levels are as follows:
Conversion Line Support: $604.23
Baseline Support: $589.90
Psychological Support: $660
Daily Cloud Support: $575.93
Thoughts & Comments from Yesterday - 12/11/2024
Yesterday was honestly an amazing day for the overall markets. Conditions were strong and remained strong, and the markets continued to rally as CPI came back as expected, signaling confidence in the markets. Most organizations continued to rally across the board, with organizations like Apple, Google, Black Rock, and Costco making a new all-time high. It was an amazing time for the markets, and I hope you all enjoyed it!
So, markets started to rally during the pre-market session as CPI data came out, and we watched as conditions were exceptionally strong, and $SPY opened the day officially at $605.77. Conditions were wonderful as $SPY rallied from the get-go, making the official low of the day at $605.50 and never looking back. Markets rallied throughout the entire morning, only starting to stagnate during the lunchtime session, and we watched as $SPY went on to make the official high of the day, leading into the afternoon trading at $608.43.
If I am honest, the afternoon was rather uneventful. After the significant movement up, momentum was relatively slow, and not much happened. Markets chopped and hovered around that $608 level, not providing us with many great opportunities. We watched as markets dropped ever so slightly into close to officially end the day with $SPY trading at $607.46, up $4.66 for the day, or up roughly 0.8%.
I will say that despite markets rallying beautifully during the pre-market session, the intraday momentum was beautiful, yet slow, like an old married couple. Hopefully, you all were able to generate a significant amount of gains yesterday and are incredibly excited about these market conditions. Opportunities were consistently amongst us to trade and realize substantial gains. I was happy with the movement in the markets yesterday, and I hope you all were too!
Let’s see where the markets take us today and have some fun!
S&P 500 Heat Map - 12/11/2024
Thoughts & Comments for Today - 12/12/2024
Today should be a fun day for the markets, but I think it all comes down to the pre-market session to see where the markets are taking us with the strength in the markets right now and great CPI numbers. I expect PPI numbers either remain as expected or possibly even see costs drop a little from the production side, resulting in great numbers and ultimately leading to the markets rallying beautifully in our favor. I do not want to speak too soon, but I am confident in today's market conditions and optimistic about seeing where things go. This can shift before the time the markets open. Still, assuming conditions remain as expected, I am very excited to see where the markets take us and do what I can to enjoy the strong market momentum.
I know I’ve been giving out tips over the previous couple of days, so I will keep up that trend. Another tip I have for you all is not to fight the momentum. Yes, this may seem simple because it is, but it is that simple. The underlying reasons are more complex.
During certain times, it may seem very logical to attempt to short. When an organization or the markets are trying to make new relative highs, and you are seeing strength across the board. But you believe that conditions are overbought across the board, and as a result of this, you want to attempt to short to catch the downside. Yes, this is a logical response to an organization rallying, but you must remember that markets can remain irrational longer than you can remain solvent. If an organization has strength, momentum, and the volume to back up the move, your sentiment is valid, but there is a strong chance that you will get wiped out.
“But what if the organization is irrationally overvalued?” You can still get wiped out quickly. Think about all the individuals who’ve been wiped due to the bullish momentum in $NVDA over the previous couple of years or $TSLA over just the previous couple of months. $TSLA has rallied roughly 100% since November, and these conditions are amazing for them. Yes, they continue to move up, but at the same time, the shorts are getting squeezed, traders are buying, and as a result, the organization continues to rally. One of these days, $TSLA will inevitably come down, and that event will be significant, but at the same time. That day was not yesterday. That day is not going to be today. That day is not going to be tomorrow. Your justification and rationale for a position are 100% logical, but you should not attempt to step in front of a speeding train to attempt to stop it from its course of action, and if you do, get ready for it to not slow down, and rip right by you.
This is just something to consider in these conditions. Don’t short the strong momentum; don’t fight the trend. Simply tread lightly, follow the direction of the trend, and enjoy the ride. It’s literally that simple.
As always, please continue to practice safe risk management. I personally am extremely excited to see where crypto and the markets take us today. So, we will make the most of these market conditions and see where things go. Please continue to remain a skeptical bull in these conditions and realize gains when given an opportunity to do so!
For my allocations today, I will say that my sentiment over the previous couple of trading days has remained the same. I am a skeptical bull who is happy with his current holding and has zero intention of actively selling or scalping in the markets. I will be looking out for opportunities, but I realistically would prefer to remain passive and safe in these conditions to minimize risk while retaining a significant amount of market exposure that I can capitalize on with relative confidence. This sentiment will last until Monday unless some amazing trading opportunities are presented today or tomorrow!
If I see any opportunities, or if I decide to get into any other plays, I’ll announce what I see in the HaiKhuu Discord.
My Personal Watchlist:
Note, just because something is on my watchlist does not mean it is a signal to buy or sell any equities
Watchlist:
$SPY, $GRYP, $TSLA, $AIFF, $NVDA, $RIVN, $GOOGL, $INTC, $DG
LONG OPPORTUNITIES:
Long-Term Dividend - $GAIN / $JEPI
Long-Term Investment - $INTC / $DG / $BA / $RIVN
Economic News for 12/12/2024 (ET):
Initial Jobless Claims - 8:30 AM
Producer Price Index - 8:30 AM
Core PPI - 8:30 AM
Notable Earnings for 12/12/2024
Pre-Market Earnings:
Ciena Corporation (CIEN)
After-Market Earnings:
Broadcom (AVGO)
Costco Wholesale (COST)
Quanex Building (NX)
Wrap up
Hopefully, markets will continue to rally and provide us all with great opportunities to trade and realize significant gains in the process. Traders should be extremely optimistic and excited about today. Please watch out for the pre-market momentum driven by PPI today, and just follow the momentum and have a great time. This should be another amazing day for the markets, so let’s realize a significant amount of gains today, and have some fun!
Good luck trading, and let’s see how $SPY treats us today!